Chapter 9. Circular and cumulative causation

The concept of Circular and Cumulative Causation (CCC) has been widely applied across the social sciences to explain the process or dynamics of change (growth or decline) of interacting economic or social phenomena. This chapter explains that change is not movement from a disturbed equilibrium state of affairs to a new equilibrium but, instead, reflects the complex dynamics of self-reinforcement. CCC is therefore sometimes identified as 'non-equilibrium economics'. Change leads to further change, in the same direction, although the process may be modulated by the state. This chapter provides a summary of the core analytical principles of CCC, the key contributors to the development of CCC such as Young, Myrdal and Kaldor, and gaps in current research.